Taxpayer Protection Act Introduced

Michael Baker, chair of Treasury and Policy Board, introduced amendments to the Public Service Act today, April 15, that will allow government to dismiss a CEO of a third-party agency who fails to meet government's financial reporting requirements.

"Some $2.5 billion in taxpayers funds will be spent this year through the third-party entities in our consolidated financial statements," said Mr. Baker. "Taxpayers need to know that those entities follow the same accountability standards as are in place in the rest of government."

The Taxpayer Protection Act gives Executive Council the authority to terminate a chief executive officer of any government entity covered by the provincial Finance Act. This includes several dozen organizations such as school boards, health boards, housing authorities, Crown corporations and small agencies.

The termination would be for failure to follow financial reporting requirements. Treasury and Policy Board has the authority to set these requirements for both government departments and third-party agencies fully under the government's control.

The amendments, in essence, will hold chief executive officers of third-party government organizations to the same accountability standards as deputy ministers of government departments.

Financial results of these organizations have been part of government's consolidated financial statements since 1999, as part of the adoption of Generally Accepted Accounting Principles. Nova Scotia has among the highest accounting standards in the country.

Treasury and Policy Board office will continue ongoing work with third party agencies in 2004-05 to strengthen accountability and reporting processes as appropriate and applicable for each entity.

"We will balance the budget once again this year, and we intend to keep it that way in years to come," said Mr. Baker. "This change ensures that leaders of third party entities understand their role in making that happen."